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How Demerit Points Work and the Affect on your Auto Insurance

Do you know how demerit points can affect your auto insurance

It is essential to understand how and why demerit points can affect your insurance. It is also necessary to understand what convictions cause and result in the loss of demerit points. Understanding what demerit points are and how they work is a great way to avoid increased car insurance rates and unwanted driving convictions.

The Government of Alberta’s Ministry of Transportation uses demerit points to keep track of the number and severity of traffic violations you’ve had. Keep reading to learn more.

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What are demerit points?

You receive demerit points when you break a specific driving law and receive a ticket and conviction. There are many different rules related to demerit points, including whether you are a new driver or a full license.

These points accumulate against your driver’s license for each traffic conviction. If you get too many demerit points, you may face a driver’s license suspension. Your auto insurance premiums are also put at risk. Demerit points accumulate from the date of conviction and remain on your license and record for two years.

Certain convictions can also cause insurance companies to raise you as a high-risk driver, which is why obeying all traffic and driving laws is imperative to keep your rates low. To find out what insurance companies consider a high-risk driver, click here.

Major incidents that could result in demerit points

Many different violations can result in demerit points. Below are a few examples increasing both in severity and the number of demerit points they add to your record:

2 demerit points

  • Running a yellow light
  • Not using your turn signals correctly
  • Backing up into an intersection
  • Speeding by less than 15km
  • Driving with an unqualified supervisor (learner’s license only)
  • Driving past curfew (learner’s license only)
  • Not having enough seatbelts for all passengers

3 demerit points

  • Driving in the wrong lane or the wrong direction
  • Failure to stop at a red light or stop sign
  • Stunt driving
  • Speeding by between 16 to 30 km

4 demerit points

  • Failure to yield to pedestrians
  • Following too close
  • Speeding by between 31 to 50 km

5 demerit points

  • Failure to stop for a police officer
  • Failure to stop at a uncontrolled railway crossing

6 demerit points

  • Careless Driving
  • Failure to stop for a school bus
  • Racing
  • Speeding by more than 51 km

7 demerit points

  • Fleeing the scene of an accident 

What happens to your license if you get a lot of demerit points?

Too many demerit points can result in the suspension of your driver’s license. The length of your suspension depends on how many demerit points you’ve accumulated, the type of license you hold (graduated or fully licensed), and the number of suspensions in the past.

How do demerit points affect your auto insurance?

The number of driving incidents on your record has a significant impact on your liability as a driver. The more demerit points you receive, the more likely your auto insurance rates will increase, which is why it is essential to have a clean driving record.

Your auto insurance rates may increase if you haven’t been obeying the laws of the road. An accumulation of demerit points can result in a refusal of your policy, but more commonly, it will cause significant rate increases and can affect your insurance premiums for 3 years.

To avoid increased auto insurance rates, always do your part in being a safe driver. Your safety, as well as the safety of others, rests in your own hands when you are driving. To earn and keep the privilege of driving, you must show that you are a safe driver and obey the road laws.

For more information about how you can get a fair price for your auto insurance policy even with demerit points on your driver’s record, contact MBS Insurance Brokers in Edmonton today. With over 50 years in the industry, we understand the obstacles on the road, and we’re here to protect you every step of the way. Our team can give you the information you need to choose the proper coverage. Contact us now for a free no-obligation quote. We also offer several auto insurance discounts. Call 780-436-7880 or contact us online to get affordable auto insurance in Edmonton.

If you are thinking about making changes to your car insurance or need to know when you should make changes to your policy, click here.